Posts Tagged ‘Dalet’

Dalet, a provider of software solutions for the creation, management and distribution of multimedia content, announced revenues for the first half of 2016 of €21.9 million, a decrease of 4% versus 1H 2015 revenues of €20.9m.

The year-over-year decline is attributable to a 43% decrease in revenue from hardware resale compared to the first half of 2015. Revenues in 1H 2015 included a one-off large contract where Dalet was responsible for the entire infrastructure, including the hardware procurement.

Gross margin for the first half of 2016 was 87.1%, up from 79.0% in the comparable period during 2015. The over 800 basis point rise in gross margin is again related to the sharp decrease in low-margin hardware resale during 1H 2016.

Revenue breakdown:

Software license revenue was €5.9 million for 1H 2016, up 9% versus 1H 2015. License revenue represented 28.2% of total revenue in 1H 2016, compared to 24.6% in 1H 2015. Growth in software licenses was driven by the North America and Asia-Pacific regions.

Maintenance support was €7.6 million, up 10% versus the 2015 first half. Maintenance revenue represented 36.3% of total revenue in 1H 2016, compared to 31.5% in 1H 2015. Growth in maintenance mirrors the expansion in software licenses and was similarly driven by installed base gains in the North America and Asia-Pacific regions.

Services revenue was €4.2 million in 1H 2016, up 7% versus the year-earlier period. Services revenue was 20.1% of total revenue during the first half of the year and 17.8% during the first half of 2015.

Revenue in Europe remained the largest geographic component at €9.2 million during the first half of the year, a decrease of 14.3% when measured against the first half of 2015. Europe represented 44% of total revenue for the first six months of the year, versus 49% in the same period of 2015. Year-over-year comparisons in Europe were affected by the aforementioned large contract from the first half of 2015 involving a significant hardware resale component.

Revenues from the Americas were €8.0 million, or 38% of total revenue for 1H 2016, up from 36% in 1H 2015. This represented year-over-year growth of 1.5% in the Americas region.

First half 2016 revenue from the Middle East and Africa (MEA) was €0.6 million, down 27.6% versus 1H 2015. The MEA region represented 3.0% of revenue in 1H 2016, down from 3.9% during the first half of 2015.

APAC revenue in 1H 2016 was €2.9 million, up 20% versus the comparable 2015 period. APAC revenue was 14% of total revenue in 1H 2016, up from 11.1% in 1H 2015.

The revenue and gross margin results were announced in a press release. The full operating results will publish in late September.

Business Outlook:

In the press release announcing the first half results, Management indicated revenue performance was as expected for the first six months of 2016. Dalet is anticipating continued growth in the second half 2016, especially in terms of gross margin. Management also stated an objective of improving operating margins to a goal of 4% to 5% by the 2017 fiscal year.

The Company entered the second half of 2016 with an order book of €23 million, which is expected to invoice during the period.

Dalet, a provider of software solutions for the creation, management and distribution of multimedia content, announced 2015 revenues of €47.4 million, an increase of 13% versus 2014 revenues of €42.1m.

On a pro forma basis, when including a full 12 months of the revenue from the acquisition of Amberfin in the 2014 revenue result (as opposed to 9 months), then revenue for 2015 increased 10% over the 2014 pro forma revenues.

Gross margin for the full year 2015 were 82%, down from 84% in 2014. Management attributed the decline in gross margin to a larger component of hardware sales.

Based on the level of gross margins, Dalet’s operating profit is close to break-even for the year before including non-recurring items.

On a geographic basis:

Revenue in Europe remained the largest geographic component at €22.5m in 2015, up by 4.6% versus the full year 2014. Europe represented 47.5% of total revenue for the year, versus 50.1% in 2014.

Revenues from the Americas were €18.0m, or 37.9% of total revenue for the year, up from 33% in 2014. The 38% growth in 2015 was positively impacted by foreign currency gains of €2.8 million (approximately 68% of the total gain).

2015 revenue from the Middle East and Africa (MEA) was €1.5m, down 33% versus 2014. The MEA region represented 3.2% of revenue in 2015, down from 6.7% in 2014.

APAC revenue in 2015 was €5.4m, up 11% versus the previous year. APAC revenue was 11% of total revenue in 2015, up from 10% in 2014. Management attributed to the increase in revenues to the initial benefits of recent commercial investments in the region.

Revenue breakdown:

Software license revenue was €13.8m, down 3% versus the previous year on a pro forma basis. License revenue represented 28.2% of total revenue in 2015, compared to 32.0% in 2014

Maintenance support was €14.9m, up 26% versus the previous year. Maintenance revenue represented 31.4% of total revenue in 2015, compared to 27.3% in 2014. Management attributed the increase in maintenance-support contracts to the increase in licenses sales in 2014.

Services revenue was €9.2m, down 4% versus the previous year. Services revenue was 19.4% of total revenue in 2015, versus 22.2% in 2014

Hardware revenue was €10.0m, up 27% versus 2014. Hardware revenue represented 21% of total revenue in 2015, versus 18.3% in 2014. The growth in hardware sales (such as storage, servers) was principally the result of a large broadcast contract where Dalet was responsible for the entire infrastructure.

Outlook:

In the earnings release, Dalet highlighted its past seven years of consecutive revenue growth. The revenue chart below is from the Dalet release.

Management then expressed optimism for continued growth in 2016 based on the size of the order book on January 1, 2016 (€36 million), increases in support contracts, and market acceptance of its software solutions.

Dalet, a provider of broadcast newsroom computer systems, asset management, and radio automation solutions, reported that its revenue for 2013 was 2012 revenue was €42.1m, an increase of 15% versus 2013.

Fourth quarter revenue was €13.1m, up 6% versus the same period a year ago.

Excluding AmberFin, the company’s revenue was up 7% versus the previous year.

Gross margin for the full year 2014 were 85%, down from 87% in 2013, and 86% in 2012

On a geographic basis:

Revenue in Europe was €21.1m in 2014, up by 19% versus the full year 2013. Europe represented 50.1% of total revenue for the year, versus 48.5% in 2013.

Revenues grew 7% in the Americas to €13.9m, or 33% of total revenue for the year, down from 35.4% in 2013

2014 revenue from MEA was €2.8m, up 4% versus 2013. The MEA region represented 6.7% of revenue in 2014, down from 6.7% in 2013.

APAC revenue in 2014 was €4.2m, up 32% versus the previous year. APAC revenue was 10% of total revenue in 2014, up from 8.7% in 2013

On a product basis:

Asset management revenue was €18.5m, up 36.2% versus the previous year. Asset management revenue represented 44% of total revenue in 2014, compared to 37.1% in 2013, and 44.9% in 2012

TV Newsroom systems was €12.2m, down 5.4% versus the previous year. TV newsroom systems represented 29% of total revenue in 2014, compared to 35.1% in 2013, and 25.2% in 2012

Sport solutions revenue was €2.9m, up 5.3% versus the previous year. Sports solutions revenue was 7% of total revenue in 2014, versus 10% in both 2013 and 2012

Radio solutions revenue was €7.6m, up 51.6% versus 2013. Radio solutions represented 18% of total revenue in 2014, versus 13.6% in 2013 and 14.6% in 2012

Integration revenue was €0.84m, down 39.9% versus the previous year. Integration revenue represented 2% of total revenue in 2014, versus 3.8% in 2013 and 5.5% in 2012

Dalet CEO David Lasry said the company “experienced growth in 2014 despite the depressed economic conditions in Europe and the uncertainty in Eastern Europe. Even with negative market factors and the restructuring costs associated with the acquisition of AmberFin, the company’s operating profit for the year should remain positive. The Q4 order intake is strong, particularly in North and South America. Our ongoing investments in Asia Pacific are now gaining traction and we expect to see revenue growth in this region as well. These positive factors should further enhance our position in the Media Asset Management and broadcast space as we continue to expand our roster of premier media customers.”

The company said that its Dalet’s backlog of orders to be executed in 2015 stands currently at €30m, similar to its level at the same period last year.

Dalet finished the year with approximately €5.2m in cash (including 0.3 M€ of restricted cash), down from €7.7m on December 31, 2013. Short term and long term bank debt on December 31, 2014 totaled €5.4m, up from €2m on December 31, 2013, following the €3.4m loan taken to finance AmberFin’s acquisition.

MAM and newsroom specialist Dalet reported that its consolidated revenue for the second quarter of 2014 was €10.7m, up 23% versus the same period a year ago, and up 42% versus the previous quarter.

Excluding a contribution of €1m from AmberFin, which Dalet acquired in April 2014, the company’s revenue in the second quarter of 2014 was €9.7m, up 23% versus the same period a year ago, and up 27.6% versus the previous quarter.

Dalet published the table below to show the difference impact of the AmberFin acquisition.

Gross margins for the second quarter of 2014 were 82%, down from 89% last year, and up from 79% last quarter. This is the second consecutive drop in gross margins comparted to the previous year. The company attributed the lower y/y margin performance to due to a less favorable sales mix in the quarter.

On a product basis:

Asset management revenue was €5.35m, or 50% of total revenue in the quarter

TV Newsroom systems revenue was €2.89m, or 27% of total revenue in the quarter

Sport solutions revenue was €535,000, or 5% of total revenue in the quarter

Radio solutions revenue was €1.6m, or 15% of total revenue in the quarter

Integration revenue was €321,000, or 3% of total revenue in the quarter

In terms of sales mix, license revenues decreased from 33% of sales in H1-2013 to 28% in H1-2014, associated professional services evolved from 30% to 23%, resale of hardware increased from 16% to 23%, recurring support revenues increased from 22% to 26% of revenues.

The company said that sales in the Americas increased by 21%, and the region now accounts for 40% of consolidated revenue. The increase in Americas revenue may be due in its win at Fox Sports 1, which is using Dalet’s “Sports Factory” as the end-to-end production and MAM system. Fox Sports 1 launches on August 17, 2013.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

The company did not disclose any other financial metrics, including profitability.

Results for the First Half of 2014:

For the first six months of 2014, the company’s consolidated revenue was €18.4m, up 20% versus the first half of 2013. Excluding AmberFin, the company’s revenue for the first six months of 2014 is up 13% versus the same period in 2013.

Gross margins for the first half of 2014 were €14.9m, or 81%, down on a percentage basis from 87% for the first six months of 2013.

Dalet ended the second quarter of 2014 with €6.5 in cash, down from€7.7m on December 31, 2013.

Debt on June 30, 2014 stood at €5.6m, up from €2m on December 31, 2013, following the €3.4 million loan taken to finance AmberFin`s acquisition.

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Related Content:

Press Release: Dalet Revenues for First Six Months of 2014: €18.4 million

After months of data collection, analysis, and visualization, we have now completed work on the 2014 Big Broadcast Survey (BBS). Reports from this study have now been published and are available from Devoncroft Partners.

If you’re not familiar with the BBS, it’s the most comprehensive annual study of technology end-users in the global broadcast industry. Nearly 10,000 broadcast professionals in 100+ countries participated in the 2014 BBS, making it once again the largest market study of the broadcast industry.

BBS reports have been designed to help readers improve their strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution. BBS reports are also used frequently for M&A-related activities by both buyers and sellers.

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Three types of 2014 BBS reports are available:

2014 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics.

2014 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology CapEx budgets, and planned deployment of new technologies including 4K, Connected TV, and Social TV.

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If you would like information about these reports and how they can help your business, please get in touch.

In addition to these paid-for reports, we will also be publishing highlights from the 2014 BBS on the Devoncroft website. These articles will be posted on a semi-regular basis, so please check back often.

To receive posts when they are published, just enter your email in the box in the upper right-hand corner of the page.

The tables below show the product categories and broadcast technology vendor brands covered in the 2014 BBS.

MAM and newsroom specialist Dalet reported that its consolidated revenue for the first quarter of 2014 was €7.6m, up 3% versus the same period a year ago, and down 25.5% versus the previous quarter.

On a geographic basis, Europe represented 55% of revenues in the quarter, the Americas represented 26%, Asia-Pacific was 14% and the Middle-East Africa region accounted for 5% of revenue.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

Gross margins for the first quarter of 2014 were 79%, down from 85.1% last year. The company attributed the lower gross margins to a less favorable sales mix during the quarter.

The company did not disclose any other financial metrics, including profitability.

These results figures do not include any financials related to AmberFin, which Dalet acquired at the beginning of April 2014. Dalet says that it will begin consolidating AmberFin revenue into its accounts starting in Q2 2014.

AmberFin revenues for fiscal year ended 31/3/2013 were £4.6 million, with an operating loss of £1.1 million.

Dalet, a provider of broadcast newsroom computer systems, asset management, and radio automation solutions, reported that its revenue for 2013 was 2012 revenue was €36.7m, an increase of 7% versus 2012.

Fourth quarter revenue was €12.3m, up 20% versus the same period a year ago. The strong Q4 made the difference for Dalet, whose revenue had been flat for the first three quarters of 2013 when compared to the same period last year.

Goss margin for the full year 2013 were 87%, up from 86% in 2012, and up from 80% in 2011. The company attributed the margin expansion to a favorable sales mix during the year.

On a geographic basis:

Revenue in Europe was €17.6m in 2013, down 6% versus the full year 2012. Nevertheless, Europe represented 48% of total revenue for the year.

Revenues grew 11% in the Americas to €12.8m, or 35% of total revenue for the year.

2013 revenue from APAC and MEA grew 43% and 64%, respectively, and accounted for 9% and 7% of total revenue, respectively.

On a segment basis:

Asset management revenue was €13.6m, down 11.7% versus the previous year. Asset management revenue represented 37.1% of total revenue in 2013, compared to 44.9% of total revenue in 2012

TV Newsroom systems was €12.9m, up 48.3% versus the previous year. TV newsroom systems represented 35.1% of total revenue, compared to 25.4% of total revenue in 2012

Sport solutions revenue was €3.8m, up 8.6% versus the previous year. Sports solutions revenue was 10% of total revenue in both 2013 and 2012

Radio solutions revenue was €5m, flat with 2012. Radio solutions represented 13.6% of total revenue, compared to 14.6% of total revenue in 2012

Integration revenue was €1.4m, down 26.3% versus the previous year. Integration revenue represented 3.8% of total revenue, compared to 5.5% of total revenue in 2012

Dalet said its “financial position remains robust and the operating profit before non-recurring items for the year should be similar to the 2012 results,” but did not provide any further details. The company had approximately €6m cash on hand at the end of 2012, but did not disclose its cash position at the end of 2013. It also did not disclose its order backlog, which stood at €22m at the beginning of 2013.

MAM and newsroom specialist Dalet reported that its revenue in the third quarter of 2013 was revenues of €9.1m, up 1% versus the same period last year.

The company said that its order intake during the quarter jumped by 25% versus the same period a year ago thanks to “a combination of orders in key markets for the company such as the US and Russia as well as the realization of the company’s first orders in Korea.”

Gross margins in the quarter were 85%, up from 84% during the third quarter of 2012.

On a product basis:

Asset management revenue was €2.37m, or 26% of total revenue in the quarter

TV Newsroom systems was €4.28, or 47% of total revenue in the quarter

Sport solutions revenue was €546,000, or 6% of total revenue in the quarter

Radio solutions revenue was €1.46m, or 16% of total revenue in the quarter

Integration revenue was €364,000, or 4% of total revenue in the quarter

On a geographic basis:

Revenue in Europe was €4.91m, or 54% of total revenue in the quarter

Revenue from the Americas was €3.18m or 35% of total revenue in the quarter

Asia-Pacific revenue was €455,000 or 5% of total Q3 2013 revenue

Middle-East Africa revenue was €637,000, or 7% of total revenue in the quarter

Year-to-Date Results:

Revenue for the first nine months of 2013 was €24.4m, up 1% versus the first three quarters of 2012.

Gross margins for the first nine months of 2013 were 86% from 84% for the same period in 2012.

The company said that its cash balance at the end of the third quarter of 2013 was €5.2m, up €800,000, and that its debt remained stable.

MAM and newsroom specialist Dalet reported that its consolidated revenue for the second quarter of 2013 was €7.9m, up 7% versus the same period a year ago, and up 7% versus the previous quarter.

The company said that sales in the Americas increased by 21%, and the region now accounts for 40% of consolidated revenue. The increase in Americas revenue may be due in its win at Fox Sports 1, which is using Dalet’s “Sports Factory” as the end-to-end production and MAM system. Fox Sports 1 launches on August 17, 2013.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

Gross margins for the second quarter of 2013 were 88%, up from 86% last year, and up from 85% last quarter.

The company did not disclose any other financial metrics, including profitability.

1H 2013 Results:

For the first six months of 2013, the company’s consolidated revenue was €15.3m, up 1% versus the first half of 2012.

Gross margins for the first half of 2013 were €13.3m, or 87%, up from €12.7m, or 83% for the first six months of 2012.

Unusually, the company did not provide any detail on its order backlog. At the end of the previous quarter (Q1 2013), the company said its order backlog expected to be invoiced in 2013 was €20 million.

MAM specialist Dalet announced that its board of directors have approved the company’s consolidated financial statements for the 2012 fiscal year.

Consolidated revenue for the year ended December 31, 2012 was €34.4m m, compared to €31.3 m (+10%) in 2011.

Gross margin for the year was €29.7m, compared to €25.2m in 2011. The gross margin rate for 2012 increased from 81% in 2011 to 86%, due to the strong shift away from the Italian subsidiary’s traditional hardware integration business in its domestic market.

The operating profit before non-recurring items for the year was €1.7m, compared to €1.3m in 2011 (+29%).
After taking into account a depreciation of the goodwill of the Italian subsidiary for €0.2 m, the operating profit was €1.5m.
Consolidated net profit for 2012 was €1.2m, compared to €1.3m in 2011.

The company ended the year with €6.5m in cash, up from €5.1m at the end of 2011, and long term debt increased from €1.1m to €1.6m.

Dalet CEO David Lasry said “In 2012 we continued a steady growth trend in revenue and profitability which has confirmed our strategy to provide MAM-driven solution to key market segments. The growth in North America has been significant, especially as related to the sports segment where we are achieving a recognized presence with several successful project deployments and new contracts.”